Seminar

Department of Systems Engineering and Engineering Management
The Chinese University of Hong Kong

Title: Equity-based incentives and supply chain management

Speaker: Dr. Erick Li
               The University of Sydney Business School

Date : Apr. 18, 2012 (Wednesday)

Time: 4:30p.m.-5:30p.m.
Venue: Room 513
            William M.W. Mong Engineering Building
            (Engineering Building Complex Phase 2)
            CUHK

Abstract:

The equity-based incentives, which refer to the use of stock options and unrestricted shares in managerial remuneration packages, are especially controversial to shareholders, institutional activists, and governmental regulators. Amid the growing controversies, equity-based incentives, however, have increased considerably in both new-economy and old-economy firms over the past several decades. Inevitably, such incentives will influence managerial decisions on supply chain management. The extant empirical research suggested that equity-based incentives encourage operational distortions such as signalling and conforming. This research examines the following questions. First, can the optimal incentive contract designed by the board of directors eliminate operational distortions? Second, if operational distortions cannot be eliminated by the optimal equity-based incentive, can such wasteful actions be mitigated by re-designing the supply chain contract? Third, if re-designing the supply chain contract can mitigate operational distortions and restore supply chain efficiency, is it really the most cost-effective way?

Biography:

Dr. Erick Li is currently a Senior Lecturer in The University of Sydney Business School. He holds a PhD degree in Business Administration from The Pennsylvania State University, a Master of Commerce in Accounting from The University of New South Wales and a Bachelor degree of Engineering in Materials Science & Industrial Engineering from Shanghai Jiao Tong University. Prior to relocating to Sydney, he had worked in Ernst & Young LLP, Southern Arkansas University, and City University of Hong Kong. He has published research articles in Decision Sciences, Management Science, and Production and Operations Management.

************************* ALL ARE WELCOME ************************
Host : Prof. Chen Youhua, Frank

Tel : (852) 3943-8310

Email: yhchen@se.cuhk.edu.hk

Enquiries : Prof. Nan Chen or Prof. Sean X. Zhou
                  Department of Systems Engineering and Engineering Management|
                  CUHK

Website: http://www.se.cuhk.edu.hk/~seem5201

Email: seem5201@se.cuhk.edu.hk    

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